On Christmas Eve, the U.S. dollar received a notable setback after jobless claims came in higher than the previous reading, rising by 0.1 from the prior 1.3%. This development influenced price movements across several major FX pairs. Let’s take a closer look below.
EUR/USD—Bullish
Over the past two sessions, the EUR/USD daily chart has delivered a notable upward retracement, aligning with the broader long-term corrective uptrend. However, the ongoing session has posted a mild pullback, while the pair continues to trade above the 9-day Exponential Moving Average (EMA).
Meanwhile, the Stochastic Relative Strength Index (SRSI) indicator lines maintain an upward trajectory following a recent crossover just above the 50 level. Technically, this suggests the pair could still advance toward the 1.1800 level despite the current minor retracement.
GBP/USD—Bullish
The GBP/USD market has followed a similar trajectory to EUR/USD. Nevertheless, the pair remains above key technical levels. The current session is represented by a red candle, but the downside movement remains minimal, allowing price action to stay above the 9-day EMA.
Likewise, the SRSI indicator lines continue to point higher while remaining in the overbought region. From a technical perspective, this indicates that bullish momentum may persist toward the 1.3550 level, with a potential extension to 1.3600.
USD/CHF—Bearish
USD/CHF has maintained a downward trajectory since the start of the week. Although the ongoing session has shown a modest rebound, the pair continues to trade below the 9-day EMA.
The SRSI indicator lines are flat and deeply embedded in the oversold region, with the curves merged and moving sideways—highlighting sustained bearish dominance over recent sessions. As a result, the current rebound appears weak, especially given recent U.S. economic developments. Consequently, the pair may continue lower toward the 0.7850 level.
USD/CAD—Bearish
In the USD/CAD daily market, bearish pressure continues to dominate. Price action has trended lower since the start of the week, with the ongoing session maintaining the broader downtrend due to persistent selling pressure.
The pair remains firmly below the 9-day EMA, while the SRSI indicator lines are dropping sharply into the oversold region. This technical setup suggests that bearish sentiment remains intact and could drive price action toward the 1.3600 level.
AUD/USD—Bullish
AUD/USD has recorded solid gains over recent sessions, with the past two being particularly significant. The ongoing session remains bullish, keeping price action above the 9-day EMA.
Additionally, the SRSI indicator curves are rising steeply into the overbought region. Given the strong bullish momentum, the pair may continue its upward move toward the 0.6800 level.
EUR/JPY—Bearish
Although EUR/JPY remains on a broader long-term uptrend, recent price action indicates growing bearish pressure. The pair has declined over the past two sessions, suggesting that sellers have taken control in the short term.
The current session’s candle sits just above the 9-day EMA, while the SRSI indicator lines remain oriented downward below the 50 level following a bearish crossover. This suggests profit-taking may be underway. Should price action fall below the 9-day EMA, a deeper pullback toward the 182.00 level could unfold.
USD/JPY—Bearish
USD/JPY has failed to capitalize on recent U.S. dollar weakness, indicating underlying strength in the Japanese yen. As a result, the pair has been in a sharp downward retracement since the start of the week.
The SRSI indicator has produced a bearish crossover, with its lines moving toward the oversold region. Additionally, the latest candle has pushed price action below the 9-day EMA and remains red, reinforcing bearish momentum. At this stage, the pair appears vulnerable to further downside toward the 154.00 level.
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